surrendering house/repo/BR

Bella_Smythe

hiya. been reading the threads about repossession and i noticed the term 'surrendering' is this different from voluntary repossession?
our situation is this - we need to go BR and just need to save up! hoping to do it next year. we have just stopped paying our mortgage to Leeds BS, no equity in property so resigned to losing it. but what order do things happen in? what if we declare BR before the BS has repossessed how does that work out? also if we're not paying mortgage to save up for BR fees how does that work with SOA when their would be no rent or mortgage, but that situation by definition wouldnt last long?
confused.com

adpod

Not 100% sure but I don't think you can go BR without giving the house back, the bank selling the house then you will know exactly what you owe the bank, if you cant pay it then its BR time.

That was what happened in my case, took about 6-8 months from giving the keys back to getting it sold and finding out exactly what I owed them.

However this might be different in England.

alastairq

It really doesn't matter..with regards to the mortgage , when BR is petitioned.....

BR in itself has no impact on a secured debt.

Only when that debt [or proportion thereof] becomes unsecured, does it fall into the BR estate [shortfall]....

As long as the original debt pre-dates any BR petition, it will fall into the BR estate once unsecured..unless, subsequent to the petition date, the BR signs a Deed of Acknowledgement for the shortfall. [advise strongly against this..it is not mandatory]

However, there are other reasons for holding off Petitioning BR.

For example...if intending to return the property to the mortgagor [re-po, surrender, all the same really].....then renting a new home is on the cards.

The inevitable credit check goes more smoothly if BR isn't present on one's credit records.....at the time.


Regarding the SOA?

I'm sure the value of the mortgage payments ought to be included...failing to pay them isn't necessarily taken into account.

One thing to consider?

Can you both actually meet the mortgage payments, if no other unsecured debts exist?

Even though in negative equity..if the payments correspond to local rental values , then the OR [who won't want to realise the value of the house] will allow those payments.

Thinking of the distant future, by still maintaining a mortgage,[even though currently in negative equity] and avoiding a re-po, makes things easier if........in the future...... you want to buy another property on a mortgage?

Just a thought